RENEWED PRESSURE ON CRYPTO AND STABLECOINS
The People’s Bank of China brought together thirteen government bodies, including judicial and internet regulators, reaffirming that digital assets do not carry legal currency status in the Chinese economy. Any attempt to use them in payment systems is treated as illegal financial activity.
Stablecoins were a central focus. Authorities warned that pegged tokens can enable opaque cross-border flows if they operate without strong identity checks and anti-money-laundering measures. This view aligns with tighter frameworks adopted in Europe and North America following recent market turbulence.
Pro-crypto analysts emphasized that stablecoins remain essential for global liquidity, enabling rapid and cost-effective movement of value for users who rely on decentralized finance to bypass slow or restrictive banking channels.
MINING ACTIVITY SURVIVES THE CRACKDOWN
Although large-scale mining was banned in 2021, several operators relocated major facilities abroad while keeping small, discreet operations inside China. Analysts argue that this highlights the limits of territorial bans on decentralized networks.
China’s renewed enforcement effort seeks to reinforce monetary authority, yet global blockchain adoption continues to grow. Stablecoins remain crucial for international transfers, and Bitcoin mining activity persists despite prohibitions. The widening gap between domestic restrictions and international progress indicates that the momentum of crypto remains firmly upward, with new hubs in Asia and Europe driving the next phase of development.
